LTCM Partners Exit
Four months after its near-collapse, Long Term Capital Management (LTCM) has suffered another lost. Two of its original partners, Nobel prize winner Myron S. Scholes and former Harvard professor William Krasker, have left the partnership, bringing the number of partners down to 14. However, both will retain their investments in LTCM as limited partners.
Scholes said in a statement that he had intended to move to California for some time, but the crisis the fund faced in August and September delayed his plans. He says now that the LTCM fund has stabilized he will proceed with his move and occasionally lecture and write at Stanford University. Scholes and Krasker both plan to undertake various consulting projects for LTCM.
Institutional appeal Mount Lucas' MLM Index Fund, which broke escrow Jan. 5 and manages $16 million, hired Powers & Dubin Asset Allocation and Management to establish a Cayman-based corporation that will allow non-U.S. investors in the fund. The fund has two series: an unleveraged series that replicates the MLM index and an enhanced series that uses three-to-one leverage. The fee structure is unique to the managed futures industry in that no incentive fees are charged. The unleveraged series charges a one-time organization fee of 50 basis points, an annual administration maximum fee of 50 basis points, management fees of 50 basis points and brokerage and clearing fees fixed at 85 basis points. …